Revenue for Q1 FY26 stood at ₹828 crore, down from ₹1,644 crore in Q1 FY25, but up from ₹611 crore in the March 2025 quarter.
The company said its auto business turned EBITDA-positive in June, driven by strong gross margins enabled by vertical integration. For Q1, auto EBITDA improved sharply to -11.6%, compared to -90.6% in Q4 FY25. Consolidated EBITDA also recovered to -28.6%, up from -113.9% in Q4.
Ola Electric delivered 68,192 vehicles in Q1, a 32.7% increase over the previous quarter. Operating cash flow for the auto business was nearly neutral, while free cash flow (FCF) improved to -₹107 crore, from -₹455 crore in Q4. On a consolidated basis, FCF stood at -₹282 crore.
The company credited cost-efficiency measures under “Project Lakshya” for the improvements. Monthly auto operating expenses fell from ₹178 crore to ₹105 crore, while consolidated opex is down to ₹150 crore, with a target of ₹130 crore for FY26.
Q1 marked the first full quarter of Gen 3 scooter sales, which now contribute 80% of total volumes. The latest models offer better performance and build quality, enabling higher margins and reduced warranty issues.
The company said it took a one-time ₹250 crore provision in Q4 for earlier Gen 1 and Gen 2 products, adding that quality has been improving significantly with each new generation.
Warranty claims for Gen 2 products were 30% lower than Gen 1, while Gen 3 saw a 60% reduction compared to Gen 2. Battery failure rates declined by 50% in Gen 2 and improved further with Gen 3. The company also highlighted a 90% lower failure rate for its in-house mid-mount motor introduced with Gen 2, versus earlier supplier-sourced motors.
Over 70% of Gen 1 vehicles are now out of warranty, and no major one-time warranty provisions are anticipated going forward.
Ola said its Roadster motorcycle is gaining traction, with strong engagement across platforms. It is now available at 200 stores, with a wider rollout planned ahead of the festive season.
FY26 outlook
For FY26, Ola Electric targets deliveries of 3.25–3.75 lakh vehicles and revenue between ₹4,200–4,700 crore. With Production-Linked Incentive (PLI) benefits starting in Q2, the company expects gross margins to improve to 35–40% by year-end, and auto EBITDA to turn positive in Q2. Full-year auto EBITDA is projected to exceed 5%.
The auto business is expected to generate positive operating cash flow later this year and become FCF-positive by FY26-end. Planned auto capex for the rest of the year stands at ₹300 crore. 
In the battery cell segment, Ola expects to complete its 5 GWh facility during FY26, with a capex of ₹1,000 crore—70% of which will be financed via existing loans. The cell business is expected to become FCF-positive by FY27 once operating at full capacity.
As of June-end, Ola Electric held a cash balance of ₹3,197 crore, which it says is sufficient to fund operations through FY26 and into FY27. The company does not anticipate raising additional capital for ongoing operations and plans to refinance a portion of its non-term loan debt in the next quarter.
